Consumers' savings behaviour, spending priorities and attitude towards investing have been affected by the slowdown. we look at two surveys for an insight.
How important are savings for your future?
Though an overwhelming majority of respondents feels savings are important, the degree varies depending on the age, number of dependants and income. More females (95%) feel savings are very important compared to males (90%).
92% very important
2% not important
6% neutral
'Neutral' respondents said they were not bothered about savings
What % of your income do you expect to save in the next one year?
An average savings rate of one-third of the income is one of the highest in the world.
22%: 21-30%
11%: Don't know
34%: 1-10%
33%: 11-20%
What are the goals for which you are saving?
Apart from saving for unforeseen circumstances, property is seen as the most important long-term asset and is a priority for most respondents.
42%: purchasing property
21%: retirement
31%: investment
69%: precautionary purposes
What are your spending priorities likely to be in the next 12 months?
The desire to secure kids' future and the rising cost of education make spending on it the top priority for most respondents. Spending on fitness almost matches the intention to buy property.
49%: renovating / buying property
69%: children's education
46%: fitness & wellness
What is your household expenditure as % of your annual income?*
Routine household expenses take up the majority of an individual's income.
16%: 41-50%
14%: 51-60%
23%: 61-70%
600 consumers were interviewed for the Mastercard Index of Purchasing Priorities 2008 survey in September last year. Participants were males and females of 18 years and above. Some responses don't add up to 100% due to an overlap of preferences; * Responses are less than 100% as the remaining participants don't fall in either of the three categories.
Who is the financial decision-maker at home?
Though women still lag behind their male counterparts when it comes to taking financial decisions, there has been a gradual increase in the percentage of women who do so in the surveyed households compared to the previous editions of the survey.
60%: Male
33%: Female
How optimistic are you about the future?
While at the height of the bull run in 2007 men felt more optimistic, it is the women who displayed greater confidence during the depressed market in 2008.
2007: Female (90%), Male (80%)
2008: Female (61%), Male (69%)
Respondents above median income
While the number of women in the workforce has gone up, their salary levels don’t yet match those of men.
2006: Male (75%), Female (25%)
2007: Male (76%), Female (24%)
2008: Male (82%), Female (18%)
The above three questions are part of the MasterCard Worldwide Index of Women’s Advancement Survey 2009.
What is the most practical way to save for retirement?
While most consumers realise the importance of regular savings, property has also emerged as an option after the slowdown.
45%: invest regularly each month
18%: invest whenever I can
12%: invest in property
11%: improve skills / get a better job
Respondents who don’t understand pensions and savings policies
The respondents in Kolkata are the most unaware, followed by those in Delhi.
66%: Kolkata
39%: Delhi
31%: Bengaluru
29%: Mumbai
The above two questions are part of the Aviva Consumer Attitudes to Savings Survey 2008, which covered 1,00,000 respondents from 25 countries.
